Fresh layer of pavement on a two-lane road in the City of Coos Bay, Oregon. Source: Credit: City of Coos Bay
| Project Name | Transportation Utility Fee, City of Coos Bay, Oregon |
|---|---|
| Location | Coos Bay, OR |
| Project Sponsor / Borrower | City of Coos Bay |
| Program Areas |  |
| Value Capture Techniques | Transportation Utility Fees |
| Mode | Local Road (Citywide) |
| Description | In May 2019, the Coos Bay City Council began assessing a transportation utility fee (TUF) through utility bills with residences/apartments paying a $10 fee and businesses a $20 fee per month. The fees include City's sanitary sewer utility and/or Coos Bay-North Bend water board/water utility for improvement of street maintenance throughout the community. The poor condition of many of the city streets is a burden to residents, businesses, and visitors. Poor roads result in increased transportation costs for the goods and services the city depends on. The poor roads can increase vehicle maintenance costs. The traditional funding source for city street maintenance, the state gas tax, were found to be inadequate to meet the repair and street maintenance needs. Without a fee in place it would take the city around 70 years to replace all of the city's failing roads. With these fees in place it cuts the time to replace that infrastructure in half. The City estimates the TUF will generate approximately $952,000 annually. These funds will be dedicated to undertaking additional repair and maintenance to streets throughout the city and intends to spend a portion of these funds for pothole maintenance in FY 2020 and save the remainder to carryover for capital street improvements in coming fiscal years Traditionally road maintenance has been paid for by state gas taxes, but the increase in projects and costs has left the city unable to meet the needs with state gas taxes alone. Coos Bay earns about $300,000 annually from the state for road maintenance, with another $400,000 which they collect through a franchise fee with Pacific Power. Unfortunately, the increased availability of funds is not enough to adequately tackle the existing maintenance backlog of deferred street maintenance. The TUF funds will be used for ongoing repair and maintenance to streets citywide |
| Cost | Residences/apartments pay a fee of $10/month, businesses pay $20/month. |
| Funding Sources | The Transportation Utility Fee is paid as a surcharge on water and sewer bill by the utility customers within the city limits, both residential and commercial. |
| Project Delivery / Contract Method | Design-Bid-Build |
| Private Partner | N/A |
| Project Advisors / Consultants | Coos Bay City Council |
| Lenders | N/A |
| Duration / Status | The City Council started collecting the Transportation Utility Fee in May 2019. |
| Financial Status/Financial Performance | The Transportation Utility Fee will generate approximately $952,000 per year for the City of Coos Bay. |
| Innovations |
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| Related Links / Articles | |
| Contacts | Carolyn Johnson |
Roadwork construction in progress on a street in the City of Coos Bay, Oregon. (Credit: City of Coos Bay)
Construction crew in the process of repairing a road in the City of Coos Bay, Oregon. (Credit: City of Coos Bay)
